December 2011

Kennebec Savings

Branches, 5; Refund ATM Surcharges, Yes; Checking account fee: No.
Highest savings account APY: Passport Savings, tiered rate.
Lowest 30-year fixed rate res. mortgage APR: 6%
Lowest residential mortgage APR & terms: 5.25%, 15-year term.
Highest APY opportunity: 1.75%, CD/IRA, 5-year term, $500 min. investment.
Highest CD APY & terms: 1.75%, CD, 5-year term, $500 min. deposit.
Best APY for 12-month IRA: .45%
Breakout advantage: “Kennebec Savings Bank is committed to operating as a profitable, conservative mutual savings bank that: Serves as the primary bank of individuals, families, self-employed professionals and small-to-medium sized businesses in our market by satisfying their financial needs with personalized, quality service and up-to-date products and technology; Positively contributes to the quality of life in our Kennebec Valley communities; and offers a challenging and rewarding work environment to the KSB team of employees.” –kennebecsavings.com

Sanford Institution for Savings

Branches: 9
Checking account fee: No.
Highest savings account APY & terms: .55% APY, Best Interest ECO-Savings, $2,500 min. balance.
Best APR for 60-month auto loan: Rates, terms, and down payment requirements vary with the age and type of vehicle being purchased.
Lowest 30-year fixed rate res. mortgage APR: 4.036%
Lowest residential mortgage APR & terms: 3.564%, 15-year, fixed rate.
Highest APY opportunity: 2.75%, 10-year Silver Link CD.
Highest CD APY & terms: 2.75%, 10-year Silver Link CD.
Best APY for 12-month IRA: .30%, $5,000 min. balance.
Breakout advantage: “SIS enjoys a long history of helping families and businesses achieve their financial goals. We are a full service bank committed to providing excellent service to individuals, families and small or large businesses. What sets us apart is our willingness to listen to customers’ needs and our ability to make timely, local decisions to meet those needs.” –banksis.com

People’s United Bank

Branches, 31; Refund ATM surcharges, Yes; Checking account fee: No.
Highest savings account APR & terms: .10%
Credit card rates for A, B, C credit scores: 13.99-18.99% APR
Lowest 30-year fixed rate res. mortgage APR: 4.012% with 25% down payment.
Lowest residential mortgage APR & terms: 3.621%, 15-year term.
Highest CD APY & terms: 1.01%, 1-year term, $500 min. balance.
Best APY for 12-month IRA: .45%
Breakout advantage: “A diversified financial services company founded in 1842, People’s United Bank provides consumer, commercial, insurance, retail investment and wealth management and trust services to personal and business customers.” –peoples.com

Casco Bay Federal Credit Union

Branches, 3; Checking account fee: No.
Highest savings account APY & terms: .30%, Health Savings, $10,000.01 min. balance.
Best APR for 60-month auto loan: 2.99%
Highest APY opportunity: 2.02%, 60-month term, $500 min. opening balance.
Highest CD APY & terms: 2.02% APY, 5-year term.
Best APY for 12-month IRA: .55%
Breakout advantage: “Because we’re a not-for-profit institution, we can offer our members lower rates on loans and higher rates on savings. Members also take advantage of our investment consulting, credit counseling, and affordable insurance services. Auto loan customers even enjoy a free auto-buying consulting service that saves time, money, and headaches.”
–cascofcu.com

PeoplesChoice Credit Union

Branches: 5
Minimum ATM withdraw: $10
Nonmember ATM charge: $2.50
Refund ATM surcharges: When using a CO-OP ATM.
Checking account fee: No.
Highest savings account APY & terms: .10%, $25 min. balance, Share Savings.
Credit Card APR for A, B, C credit scores: From 9.99% to 13.90%.
Best APR for 60-month auto loan: 2.49% with PeoplesChoice credit card.
Lowest 30-year fixed rate res. mortgage APR: 4.875%
Lowest residential mortgage APR & terms: 2.090%, 30-year term.
Highest CD APY & terms: 2.12%, 60-month term, $75,000 min. balance.
Breakout advantage: “We know our members by name, we treat them like family when they come in. We take the time to chat with them. We’re committed to providing our members with the most competitive products available. We’re members of the community; we give a lot back. We just opened our Saco Operations Center. In the first year it was used 75 times at no cost–always at no cost. We host free financial seminars, and we always provide dinner. It’s open to the public.” –Martha Judkins, Call Center Supervisor

Banks and Credit Unions in their Own Words

“Credit unions provide the same financial services as banks, including checking accounts, debit and credit cards, online banking and bill pay, IRAs, mortgages, and car loans.  However, while banks are for-profit institutions, credit unions are not for profit.  For this reason, while consumers who use a bank as their financial institution are called “customers”, those who choose a credit union are called “members”.  As a member/owner, each member has an equal vote in electing a volunteer, unpaid board of directors. Since there are no stockholders, members receive higher rates on their savings accounts, lower rates on loans, fewer and lower service fees, as well as many other benefits.

“While the significantly lower, fewer or no fees compared to for-profit financial institutions are great reasons choose a Maine credit union, convenience is another strong benefit.  Most Maine credit unions are part of Shared Branching, a service that allows members the convenience of using other Maine credit unions, as well as credit unions across the country and even the world, just as if they were their own credit union. With more than 145 locations throughout Maine, and more than 4,400 branch locations across the country, credit unions have the fourth largest branch network in the country.  Maine credit unions also take part in the SURF ATM Network, which allows members to use over 200 ATMs throughout the state for free.

“When someone joins a Maine credit union, they are both supporting a local business, as well as investing in their community.  Credit unions live their people-helping-people philosophy every day and are committed to the communities in which they serve. The many causes credit unions support stretch far and wide, from educational programs such as Financial Literacy for Youth, to ongoing initiatives like Ending Hunger in Maine.  They also go the extra mile to help their members. For example, with the winter season upon us, many credit unions are offering special fuel and/or energy loans to help keep staying warm affordable for thousands of Maine consumers.”
–John Murphy, President, Maine Credit Union League

“Of the total 32 [Maine] retail banks, 19 are mutual banks (they have no stock holders). They take their retained earnings and put it back into the community. [Others were] created by people putting capital at risk, becoming stockholders, and if the bank was successful, they get paid dividends. People sort of look at banking as ‘one,’ when in reality they’re multifaceted.

“When a bank goes to the Diebold Corp. and buys an ATM, by the time it’s installed it’s about $100,000, and they pay the state $5,000 in sales tax. When a credit union buys the same model ATM, they are exempt from paying sales tax, nor do they pay any state banks franchise taxes, nor do they pay any deferral income taxes.

“As an industry, we give back a ton of money to the community. Our numbers for 2010 had $10M in actual cash contributions to Maine nonprofits, youth and senior citizens’ charitable organizations. I know the credit unions do not give that level of money. And the reason we do it is because Norway Savings Bank isn’t going to move to Iowa. They’re staying here in Maine. They get to reinvest back into the community. It’s their culture; it’s what they do.”
–Chris Pinkham, President, Maine Bankers Association